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Project Cancellation Letter
1. Date and Address Block: Formal business letter heading with current date and recipient's complete address details
2. Project Reference: Clear identification of the project being cancelled, including project name, reference numbers, and original agreement date
3. Formal Notice of Cancellation: Clear and unambiguous statement of project cancellation, citing relevant contract provisions if applicable
4. Effective Date: Specific date when the cancellation takes effect, considering any notice periods required by the original contract
5. Reason for Cancellation: Brief explanation of the grounds for cancellation, ensuring alignment with permissible termination reasons under the contract
6. Immediate Actions Required: List of immediate steps required from both parties to begin the cancellation process
7. Financial Settlement: Overview of how outstanding payments, expenses, and financial obligations will be handled
8. Closing Statement: Professional closing with contact information for further communication
1. Transition Plan Reference: Include when the project requires specific handover or transition arrangements
2. Intellectual Property Rights: Include when there are IP rights or materials that need to be returned or rights that need to be addressed
3. Confidentiality Reminder: Include when there are specific confidentiality obligations that survive project cancellation
4. Personnel Reallocation: Include when there are dedicated staff members whose roles need to be addressed
5. Equipment Return: Include when there is physical equipment or assets that need to be returned or redistributed
6. Data Handling: Include when there are specific requirements for handling project-related data post-cancellation
7. Dispute Resolution: Include when there are contested issues or specific dispute resolution procedures to be followed
1. Schedule A - Project Details: Detailed information about the project being cancelled, including scope and deliverables
2. Schedule B - Financial Summary: Detailed breakdown of all financial aspects including payments made, outstanding amounts, and termination costs
3. Schedule C - Assets Inventory: List of project-related assets, materials, or equipment requiring return or redistribution
4. Schedule D - Transition Checklist: Detailed list of tasks and responsibilities for project closure
5. Schedule E - Key Contacts: List of key personnel involved in the cancellation process from both parties
6. Appendix 1 - Original Contract Reference: Copy or reference to relevant sections of the original contract regarding termination
7. Appendix 2 - Supporting Documentation: Any relevant supporting documents justifying the cancellation decision
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